InsurTech startup Buddy has secured a significant boost in funding, raising $7m from 49 investors, to bring its total funding to $8m.
The recent funding round, closed in mid-January, saw notable investors such as Sequoia Capital, Plug and Play, and Atypical Ventures contributing to Buddy’s growth trajectory, according to InsurTech Insights.
The initial sale of the round commenced in March 2023, indicating sustained investor interest over time.
Buddy, founded by CEO Charles Merritt, insurance veteran Jay Paul, and Martin Agency alum David Vogeleer, offers its software to brokerages and insurance carriers through a subscription-based model. The platform charges a monthly fee for each insurance product available, providing a seamless experience for managing and presenting products to clients.
The startup provides accident insurance tailored for outdoor enthusiasts engaged in intensive activities like rock climbing or mountain biking.
This innovative approach caters to the evolving needs of modern consumers, offering coverage solutions for niche segments of the market.
Buddy CEO Charles Merritt stated, “We are very good at building software to transact insurance on the internet. There are other people there who would like their insurance products to be easier to transact on the internet.
“For me, that transition is a reminder that the people who buy things on behalf of companies are also people. Communicating how we’re addressing a need for what you might think of as a customer isn’t really that different from how you would talk to someone who is spearheading ecommerce at a big insurance company. We have a very human approach that started with our consumer roots.”
“I don’t know if (the insurance industry) is dead last in terms of percentage of penetration, but they are definitely evolving now in a way that other industries have evolved 10 or 20 years ago when it comes to eCommerce.”
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